🐋 $SOXLB fell below the 100 level, just 3 days after it last reached this point.
A large number of orders tend to cluster around key levels. Let’s first talk about why these price levels matter.
The more often a price level is tested, the more weight it tends to carry in traders’ minds. But some argue that repeated tests can also deplete the buying support there.
A key level itself doesn’t determine whether prices rise or fall. It’s simply where the tug-of-war between buyers and sellers is most intense; ultimately, the outcome depends on the flow of funds.
It’s much safer to work out your position size based on where you’ll place your stop-loss than to choose one by feel.
Volatility is high, so use leverage with care.
A large number of orders tend to cluster around key levels. Let’s first talk about why these price levels matter.
The more often a price level is tested, the more weight it tends to carry in traders’ minds. But some argue that repeated tests can also deplete the buying support there.
A key level itself doesn’t determine whether prices rise or fall. It’s simply where the tug-of-war between buyers and sellers is most intense; ultimately, the outcome depends on the flow of funds.
It’s much safer to work out your position size based on where you’ll place your stop-loss than to choose one by feel.
Volatility is high, so use leverage with care.